Ministry suggests increasing export tariff on in-demand tapioca chips

"Tapioca exports rose 24 per cent year-on-year in volume to 1.37 million tonnes in the first quarter of this year and 7.91 per cent year-on-year to 3.3 million tonnes in 2014." — File Photo

HA NOI (VNS) — The Ministry of Finance has proposed to increase export tariffs on tapioca chips and ethanol, considering their high demand in the domestic market.

According to a draft proposal for adjusting tariffs on E5 petrol (ethanol petrol) and materials used for making ethanol petrol, export tariffs should be increased from zero to 5 per cent on tapioca chips used to produce ethanol and 3 per cent on ethanol made domestically.

The ministry said the increase of the export tariffs on tapioca chips and ethanol will ensure enough supply for producing bio petrol.

Meanwhile, the state will encourage the people to use bio petrol, according to a report in the Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper.

Although tapioca chips is a main ingredient for producing ethanol and one of the important materials for processing bio petrol, its exports have increased sharply.

Tapioca exports rose 24 per cent year-on-year in volume to 1.37 million tonnes in the first quarter of this year and 7.91 per cent year-on-year to 3.3 million tonnes in 2014, according to the Ministry of Agriculture and Rural Development.

The increase in the exports of tapioca, the main raw material for bio petrol production, has affected the industries that are manufacturing bio petrol for selling it nationwide from December 2015.